Congressman Walt Minnick (D-Idaho) Gets It

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In an interview published in the July 29th New York Times, Congressman Walt Minnick (D- Idaho) and writer Robb Mandelbaum discussed the current status of small business lending. We found this exchange to be particularly interesting (highlighting is by us):

Q.What do the small-business owners you talk to say are the big issues that they're most concerned about?

A. Well, today, the two big issues are just lack of business and lack of financing.

Q.If companies don't have much business, why do they need credit?

A. What I'm finding is that the recovery is very ragged and uneven. Some businesses are really going gangbusters, others are seeing some small improvement, and other business owners tell me they see nothing on the horizon and they're continuing to cut costs and trying to hang on. It's only for the ones that are seeing improvement that credit is relevant, but it's the small businesses who want to expand who normally drive a recovery. I think the biggest reason why the recovery appears to be faltering is that there are collectively enough of these small businesses who do have logic for expanding who can't get any money from their community banks or other familiar and local sources of credit.

As a follower of BoeFly you already know that the problem identified by Congressman Minnick is the very problem solved by BoeFly - connecting borrowers and willing lenders regardless of where they are located. Taking this inefficiency out of the process is what BoeFly is all about!